Ethereum Retraces After Hitting Crucial Resistance; Here’s How Low It May Dip

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Ethereum is currently trending downwards after stabilizing above $320 throughout most of the day yesterday.

It appears that investors are taking profits and potentially rotating their capital into Bitcoin or other altcoins.

It’s important to note that Ethereum has yet to visit its key high time frame resistance level seen while looking at its USD trading pair. Analysts believe this level sits around $350.

ETH has hit a crucial resistance level seen while looking towards its Bitcoin trading pair, however, and one analyst is forecasting that this will spark a short-term decline.

Ethereum’s Price Dips Lower as Bitcoin and Crypto Market Stabilize

At the time of writing, Ethereum is trading down roughly 3% at its current price of $314.

Yesterday, bulls were able to propel ETH as high as $325 before it lost its momentum and consolidated. It was not able to keep up with the gains that BTC posted throughout the day.

Despite this, it is important to note that Ethereum has still been significantly outperforming BTC over a mid-term time frame.

The crypto is currently trading up from one-week lows of under $240, and many have speculated that its sharp rise from these lows is what has given rise to Bitcoin’s recent uptrend.

As Bitcoinist reported yesterday, analysts believe that the key resistance level Ethereum bulls will likely target in the near-term sits between $350 and $360.

Although it has yet to hit these levels, there is a strong chance that buyers will extend its uptrend as long as Bitcoin remains stable.

ETH Could Soon Post Notable Losses Against BTC

Ethereum does have the potential to rally higher against USD in the near-term, but analysts are expecting it to lose value against Bitcoin.

While speaking about this, one analyst explained that he is watching for ETH/BTC to decline from its current price of roughly 0.03 BTC to around 0.024 BTC.

“ETHBTC: Would like to buy around the channel lows – consolidation before the break out.”

Image Courtesy of TraderXO. Chart via TradingView.

ETH might hit these levels while also reaching its crucial high time frame USD resistance if it continues underperforming Bitcoin.

Featured image from Shutterstock.
Charts from TradingView.
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